An arm's length transaction is a sale in which both parties are informed of the property's merits and shortcomings, neither is acting under unusual pressure, and the property has been on the open market for a reasonable time. You should use only arm's length transactions as a comparable.

Give example's of transactions that are not arm's length.

Foreclosures, relative to relative transactions. (i.e. a transaction which situations may have influenced the price of the transaction therefore causing its price to be different from actual market value.)

The process of evaluating the adjusted prices of the comparables to arrive at an estimate of the subject property's market value is called _____________.

Reconciliation.

What is submitted to a lender if an appraiser appraises a home significantly below the price agreed upon between the seller and buyer?